1325 reached . 1327.5 traded 1/26/12

5 min ES . notice how many trend lines are still dictating pivots

Good afternoon trend riders... Another day & another new 2012 high of 1320.75. Today the catalyst was the FOMC which as soon as they dropped their 'knowledge' the market lurched higher as if the Bernank had just perfected fusion...

The centrally planned and centrally controlled market will only go in one direction, without QE UP.... because apparently all the market needs to move higher is synthetic ETF QE administered via individual stock arbitrage creating what looks like buyers and sellers.. when in reality it is a game of hot potato between HF programs..

Anyway, from the 5 min chart above you can see the violence of the moves during cash sessions, including today's buying frenzy. Monday and tuesday the futures looked curiously weak until around 5 am in the morning when the machines stepped in taking prices vertical.

What makes this morning's trade different was we had weak equity futures from Asia open until about 15 minutes after CASH opened, then buyers stepped in around 1302  melting the price higher into FOMC.. once FOMC hit futures lifted from 1308 until 1320.75.. simple right.. WE could easily see 1325 if the momentum continues. Looking like by march we will be clear above 2011 highs...

example of ETF correlation ...FXE and EDC .. exact same chart..

Remember apple carried the nasdaq into 11 year highs today while google sold off 11 points...

Trade what you see and not what you think.